LOCKDOWN LEVEL 3  [Adjusted ver. 3] 


Vaccine rollout day 182

New cases 8988
New Deaths 555
Recovery Rate 90.8%

By the close of trade on Tuesday 3rd August 2021, the South African rand strengthened against the US dollar.

  • Factory Orders in the US continued to rise in June. US Dollar Index pared early gains, stays flat above 92.00. New orders for manufactured goods, Factory Orders, in the US rose by $7.4 billion, or 1.5%, to $506 billion in June, the data published by the US Census Bureau showed on Tuesday. This reading followed May’s expansion of 2.3% and came in better than the market expectation for an increase of 1%. “Shipments, also up thirteen of the last fourteen months, increased $7.6 billion, or 1.6%, to $499.0 billion,” the publication further read.
  • Job growth averaged 567,000 over the last three months. That is probably a good best guess for the sort of job growth we can expect in July. We are still seeing businesses reopening and expanding with the ending of pandemic restrictions in hard hit sectors like restaurants, hotels, and live entertainment.
  • Fed Governor, Michelle Bowman stated that labour market will take time to rebound from the pandemic hit and a lot needs to be done for the economy to recover fully and get back on track.
  • The U.S. Treasury Department said the government will borrow almost $1.4 trillion in the second half assuming lawmakers raise or suspend the newly reinstated debt limit, as money continues to support coronavirus relief even before the impact of additional economic programs being considered by Congress. The department expects to issue $673 billion in net marketable debt from July through September, $148 billion less than it estimated in May, according to a statement released Monday in Washington. The Treasury sees an end-of-September cash balance of $750 billion, unchanged from its forecast three months ago.
  • North Korea wants a raft of international sanctions eased – including on imports of luxury items such as high-class liquors and suits – before it will restart denuclearization talks with the United States, South Korean lawmakers have said. Pyongyang has also called for sanctions banning its metal exports and imports of refined fuel and other necessities to be lifted, the lawmakers said on Tuesday after being briefed by Park Jie-won, head of the South Korea’s National Intelligence Service (NIS).
  • PMI survey data showed a steeper increase in Chinese services activity in July. The stronger upturn coincided with the successful containment of the recent uptick in COVID-19 cases, which in turn led to greater customer numbers and boosted new order intakes. As a result, firms registered a renewed increase in backlogs of work, which led to a slight rise in payroll numbers. Business confidence also strengthened from that seen in June. Finally, prices data showed steep increases in both input costs and output charges.
  • The yield on benchmark government bonds rose yesterday. The yield on 2026 bond rose to 7.29%. Further, the yield on 2023 bond advanced to 4.94%, while that for the longer-dated 2030 issue rose to 8.79%.

In early morning trade on Wednesday, the US dollar is trading lower against the South African rand at R14.2896, while the euro is trading lower at R16.9632.  The British pound has declined against the South African rand to trade at R19.9072.

By the close of Trade on Tuesday, the euro declined against most of the major currencies.

  • The eurozone producer price index (PPI) accelerated in June, driven by a further surge in energy prices.
  • Covid-19 cases are continuing to climb in China, threatening to derail consumer recovery while delta infections are hampering tourism and spending during peak holiday travel.

In early trade on Wednesday 3rd August 2021, the euro advanced against the US dollar to trade at $1.1886, while it has marginally weakened against the British pound to trade at GBP0.8534.